CHAPTER ONE
INTRODUCTION

1.1 Background of the study

Management is an essential part of an organization which helps to achieve all it’s goals and objectives with the right use of resources physical and financial with the appropriate use of management functions such as planning, organizing, staffing, leading, controlling, communicating, coordinating, supervising, motivating, directing, etc. The concept of management represents a team, class or section of people in various managerial functions. All the managers from the chief executive to the first line supervisors collectively come under management. Generally, it represents a group consisting of BOD’s, managers and supervisors. In practical sense these managers are involved in creative and instructional works which are essential for efficiency of the organization.
Except in small scale organizations, more managers are appointed to different departments and branch offices to bring smoothness and uniformity in organizational performance. For this purpose, management hierarchy is divided into different levels and in each level a manager or head is appointed. He is responsible for all the activities of the concerned department or section. The concept of division of management into different levels has developed to distribute both authority and responsibility into various levels. In large organizations; it is not possible for a manager to manage all the organizational performances without distributing to subordinates. Hence, according to nature and size of the organization, management system is divided into mainly three levels, they are:

Fig 1.1 Managerial level

1.1.1.Top Level Management:
This level is also known as a key or brain of the management. They take their
authority directly from owners. Generally, top levels management is constituted with a management committee elected directly from shareholders as members of board of directors. This level consists of managing director or general manager.
The following are the major functions of this level:
• It defines the overall objectives of the organization.
• It sets up organizational structure to complete the work in efficient and systematic manner.
• It directs, co-ordinates and leads to all the members of the organization.
• It appoints departmental managers and guides them to their works.
• It exercise overall control to all the authorities of the organization.
• It evaluates and reviews the performances of all departments and takes necessary steps to achieve organizational goals.

1.1.2. Middle Level Management:
This is the second or intermediate part of the management. This level of management consists of departmental heads like personnel manager, production manager, marketing manager, finance manager and similar other positions. In some big organization, this level of management may have two layers i.e. senior and junior middle levels managements. Heads of the department come under senior level whereas branch heads are under junior level management. The following are the functions of this level:
• It plays the role of mediator between top level management and first line management.
• It implements the plans and policies laid down by the top level management to lower level management and information about achievement and problem of lower level management is given to the top level management.
• It prepares departmental plans and strategy on the basis of guidance and information from top level management.
• It designs organizational set-up, divides work among the subordinates and maintains coordination among them.
• It delegates organizational set-up, divides work among the subordinates and maintains coordination among them.
• It delegates authority and responsibility to the lower level management.
• It makes provision of training, work-shop, seminar and other activities for the development of working efficiency of the employees.
• It submits report of achievement of works are recommended value suggestion to the top level for the overall development of the organization.

1.1.3. Lower Level Management:
This is also known as first line or operating level management. It is directly involved in daily operations of the organization like production, marketing, financing, etc. This level consists of supervisors, foreman, sales officers, account officers, superintendents, and other operational heads. The following are the functions of this level of management:
• It makes day-to day plans to implement plans laid-down by middle level management.
• It distributes responsibilities and duties to the employees.
• It provides necessary instruction and guidance to do the work in the best possible way.
• It manages facilities to operate and create better environment for work.
• It performs the function of channel of communication between middle level management and the operating level employees. It submits the report of achievement of performance to middle level management.

1.2 Statement of the Problem
Organizations are said to be one of the strong pillars for the development of rural and